-- Posted 8 July, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $909.25 | -$19.90 |
Silver | $12.84 | -$0.36 |
XAU | 129.30 | -3.15% |
HUI | 312.98 | -4.38% |
GDM | 966.23 | -4.01% |
JSE Gold | 2261.23 | +18.83 |
USD | 80.68 | -0.04 |
Euro | 138.75 | -0.44 |
Yen | 107.83 | +2.42 |
Oil | $60.14 | -$2.79 |
10-Year | 3.289% | -0.171 |
T-Bond | 121.25 | +1.828125 |
Dow | 8178.41 | +0.18% |
Nasdaq | 1747.17 | +0.06% |
S&P | 879.56 | -0.17% |
The Metals:
Gold and silver steadily fell in Asia and London before they accelerated their losses in New York and ended roughly 0.5% off their noontime lows of $904.85 and $12.73 with losses of 2.14% and 2.73%.
Euro gold fell to about €656, platinum lost $44.50 to $1093.50, and copper fell nearly 7 cents to about $2.15.
Gold and silver equities fell roughly 5% midday before they stabilized in afternoon trade, but they still ended with about 4% losses on the day.
The Economy:
Report | For | Reading | Expected | Previous |
Consumer Credit | May | -$3.23B | -$8.5B | -$16.5B |
U.S. mortgage applications climb from 7-month low Reuters
G8 sees economy still in peril, falters on climate Reuters
IMF Sees Stronger Global Rebound From ’09 Recession Bloomberg
Geithner Urges Quick Action on Rules Revamp; Fed's Role Debated Bloomberg
Apartment Vacancies in U.S. Reach 22-Year High, Reis Reports Bloomberg
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 7/04 expected at 600,000 and at 10AM is the Wholesale Inventories report for May expected at -1.0%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell for the sixth straight session to almost $60 on continued worries over waning energy demand. Today’s impetus came from a larger than expected build in distillate inventories of 3.7 million barrels to an almost 25 year high. Gasoline stocks rose 1.9 million barrels while crude inventories fell by a less than expected 2.9 million barrels.
The U.S. dollar index was mixed and ended slightly lower as traders bought back borrowed yen on worries over economic growth that prompted participants to unwind those trades in which they had borrowed yen to bet on higher yielding assets.
Treasuries jumped higher and the Dow, Nasdaq, and S&P erased most of their earlier losses as today’s bond auction of 10-year notes went much better than expected and eased fears over the government’s ability to sell debt. “The 10-year notes sold today drew a yield of 3.365 percent, below the 3.398 percent average estimate of six bond-trading firms surveyed by Bloomberg News. Investors bid for 2.62 times the amount of debt available the June sale, versus an average of 2.40 at the previous 10 scheduled auctions.”
Among the big names making news in the market today were Google and Microsoft, NRG Energy and Exelon, and Amgen.
The Commentary:
“Dear Friends,
The battle between Management of Perspective Economics (MOPE) and Economic Law is the drama you are witnessing. Put another way, it is gold trading banks versus a public via Goldman Sachs type trading programs.
MOPE would tear the guts out of every public and private balance sheet for their own personal benefit, declaring the system safe and sound while playing markets like a violin to prove their point.
MOPE cannot and will not rule the outcome.
Economic law is inviolate that at best can only be delayed by the white collar, satin shoe, financial criminal element that seeks to enrich itself with no limits on desires, regardless of the cost to the citizens of the Western world in terms of human suffering.
The Western world is broken. the dollar has 121 days left before the CONFIDENCE element is strung out to dry.
This I know. Gold is headed for $1224 and thence on to $1650. All of this will play out by my date of January 14th, 2011.
Alf and Armstrong will be proven great predictors of these markets.
Form over substance is the rule of this day. In 121 days substance will rule over form.
Respectfully yours,”- Jim Sinclair, JSMineset.com
“Dear CIGAs,
A tip of the hat to the US monetary authorities – they have managed to create the nearly perfect world – rising bonds equating to falling yields while at the same time the US Dollar is working higher. What a deal for the US! We get to continue issuing more and more IOU’s as we spend our nation into the drink while these IOU’s get eagerly sought after by investors looking to find a safe haven as the equity markets implode. Ramp up the supply of Treasuries while you ramp up demand at the same time. What a neat trick.
Meanwhile, the rush into the Dollar and out of all things commodity by the hedge fund community, particularly crude oil, has pretty much put the kibosh on the gold price. Down it went with not only longs liquidating as support levels were violated but new fresh short sellers have arrived on the scene. After all, if the price of commodities is collapsing across the board, who needs gold is now the predominant sentiment.
Accordingly, the ultimate in safe havens (insert derisive laughter and scorn here), US Treasuries (IOU’s backed by the full faith and credit of our illustrious, free-spending, punch-drunk, politicians), rallied sharply higher as the uptrend in bonds continues in spite of the massive supply issues forthcoming. It seems that with the wilting and withering of the “green shoots” theory, the only thing showing green on the screens these days is the bond market. Hold that for a moment - pork bellies are up today so we bacon eaters can stand tall and display our pride as we buck the trend and prove ourselves to be rebels at heart.
More seriously, gold broke down technically in today’s session once it pushed past the $920 level and downside momentum carried it even lower to violate the $915 level. With today’s move it is now solidly below all of the major moving averages with the short term trend firmly in favor of the bears. The broad consolidation pattern of the last 5 months shows support near the $890 level followed by more substantial support near $880. Those will have to hold to prevent a rout of the longs that could conceivably take it down as low as $865. It will take very strong buying from overseas to offset the speculative selling that has now arisen. It did seem to uncover some buying of a value nature just above $900 in today’s session.
The mining shares simply cannot get a break of any sort with the collapse in price today in the HUI and the XAU turning those charts decidedly bearish as well. Markets below the 100 day moving average cannot ever be considered to be friendly. They will need to recapture that level quickly and move higher or run the risk of attracting more selling from tired longs.
As usual, we are once again reduced to watching the gyrations in the Dollar and in the crude oil market for signs that demand in gold is resurfacing. If the Euro begins to recover to the upside and crude oil stabilizes above $60, then gold too will stabilize. If they do not, neither will gold.
Looking over at the crude oil chart, there is a Fibonacci retracement level coming in near the $58 level should crude close below psychological round number support at $60. If it fails to hold there, $54 looks likely. That would probably be enough to take gold down to $880 so hopefully that market will bottom out soon.
Maybe it was the last payrolls number or the latest consumer confidence reading or talk of Stimulus II, but whatever it was, it has definitely dispelled the green shoot theory that governed these markets for the first half of the year. We now seem to have much more gloom and pessimism ruling in the minds of investors with talk of deflation outnumbering inflation talk. Once again we are back to the battle of the two “flations” and until this war is resolved, the markets are going to be marked by this same idiotic volatility that has plagued them for the last couple of months.
In the meanwhile as this madness continues, enjoy your family and friends and get away from the computer screen for a while. Ultimately, those are the most important things in life anyway.”- Dan Norcini, More at JSMineset.com
“August Gold closed down 19.8 at 909.3. This was 4.5 up from the low and 10.8 off the high.
September Silver finished down 0.368 at 12.852, 0.153 off the high and 0.112 up from the low.
A big range down extension in August gold put prices down to the lowest level since May 6th. Ongoing strength in the Dollar was heralded by the press as the main reason behind the slide but a wave of commodity fund selling off regulatory fears was probably the main influence in the Wednesday trade. Certainly some of the selling was the result of fresh and enhanced demand fears and therefore the gold market seemed to be under a siege because of a number of issues. With so many physical commodities under pressure Wednesday, it is even possible that speculation of a return to broad based deflationary conditions was serving to bring in some gold selling.
With a big range down extension in silver pressing September silver down to the lowest level since May 4th, it appeared as if the bear camp was flush with ammunition. While the Dollar was slightly higher, it seemed as if a broad based wave of commodity fund selling was at least partially behind the sharp slide in silver prices today. With fears of sagging industrial demand also hurting energy and copper prices on Wednesday, it is also possible that classic demand orientated selling was being seen in the silver market.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
G-8 leaders to be given symbolic gold coins
GATA issues press release on letters to SEC and CFTC
John Embry: Once gold clears $1,000 it will stay there
GATA urges SEC, CFTC to probe Goldman trading program
Ted Butler: This may be the last time
The Statistics:
Activity from: 7/07/2009
Gold Warehouse Stocks: | 8,862,965 | - |
Silver Warehouse Stocks: | 117,245,354 | -74,327 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1,120.19 | 36,015,305 | US$ 33,274m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 134.11 | 4,311,742 | US$ 3,915m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.73 | 440,314 | US$ 401m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 38.84 | 1,248,710 | US$ 1m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 5m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 1.59 tonnes/
COMEX Gold Trust (IAU)
Profile as of 7/7/2009 | |
Total Net Assets | $2,130,696,838 | Ounces of Gold
in Trust | 2,294,206.965 |
Shares Outstanding | 23,350,000 | Tonnes of Gold
in Trust | 71.36 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 7/7/2009 | |
Total Net Assets | $3,734,395,872 | Ounces of Silver
in Trust | 280,510,676.900 |
Shares Outstanding | 284,850,000 | Tonnes of Silver
in Trust | 8,724.86 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Ivanhoe’s (IVN) revised draft Investment Agreement comments and Senior International Adviser appointment, Paramount’s (PZG) project acquisition, Exeter’s (XRA) resource estimate, Lihir’s (LIHR) closed hedge book, Endeavour’s (EXK) drill results, and Minefinders’ (MFN) second quarter production and sales results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Tanzanian Royalty | TRE +5.43% $2.91 |
2. Seabridge | SA +2.30% $26.20 |
3. Solitario | XPL +0.56% $1.81 |
LOSERS
1. Rubicon | RBY -11.31% $2.5189 |
2. International Royalty | ROY -10.65% $2.77 |
3. US Gold | UXG -9.12% $2.49 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
Threegold Resources Announces Private Placement and Results From the Annual General Meeting - More
- July 08, 2009 | Item | E-mail
Ivanhoe Mines Ltd.: Statement Regarding Oyu Tolgoi Draft Investment Agreement - "Ivanhoe Mines (TSX:IVN - News)(NYSE:IVN - News)(NASDAQ:IVN - News) is aware of a number of news reports and commentaries published in Mongolia and in some international media in recent days that have speculated on developments regarding the status and provisions of the revised draft Investment Agreement for Ivanhoe Mines' Oyu Tolgoi copper-gold project in Mongolia. Ivanhoe Mines cautions that a number of the reports include inaccurate or incomplete information on important details and should not be relied upon by investors." More
- July 08, 2009 | Item | E-mail
Hinterland and Partners Vend Two White Gold District, Yukon Properties to Silver Quest - More
- July 08, 2009 | Item | E-mail
Virgin Metals Annual and Special Meeting Update - More
- July 08, 2009 | Item | E-mail
Callinan Receives Balance of 2008 Net Profits Interest Payments from HudBay Minerals - More
- July 08, 2009 | Item | E-mail
Oromin Explorations Ltd.: Drill Mobilization at Santa Rosa, Argentina - More
- July 08, 2009 | Item | E-mail
Ventana Updates Capital Structure and Announces Discovery of New Zone - More
- July 08, 2009 | Item | E-mail
Glen Eagle Wins Right to Proceed to Arbitration - More
- July 08, 2009 | Item | E-mail
Weststar Acquires Golden Fox Claims in Yukon - More
- July 08, 2009 | Item | E-mail
Exploration Orbite V.S.P.A. Inc.: Private Placement of $200,000 - More
- July 08, 2009 | Item | E-mail
Paragon Minerals and Golden Dory Complete Phase 1 Drill Program at Huxter Lane Gold Project - More
- July 08, 2009 | Item | E-mail
Drill Rig Mobilized to RJK Explorations' Dorion South Platinum/Palladium Cu Ni Project in the Thunder Bay North Camp - More
- July 08, 2009 | Item | E-mail
Sulliden Re-Initiates Exploration Drilling at Shahuindo - More
- July 08, 2009 | Item | E-mail
Unico, Inc. Releases July 2009 Investor Newsletter Highlighting Shipments of Concentrate Samples From the Deer Trail Mine for Alternative Processing - More
- July 08, 2009 | Item | E-mail
Luiri Gold Completes First Placement for C$1.5 Million and Sets Date for Shareholder Meeting - More
- July 08, 2009 | Item | E-mail
Maya Gold & Silver Inc. Raises $722,215 From Exercise of Warrants - More
- July 08, 2009 | Item | E-mail
Millrock Exploration Update - More
- July 08, 2009 | Item | E-mail
Wallbridge Mining Announces the Unexpected Passing of its Chairman, Risto Laamanen - More
- July 08, 2009 | Item | E-mail
Golden Chalice Resources: Abitibi East Property to Receive $344,694 in Exploration - More
- July 08, 2009 | Item | E-mail
Mercator Minerals Announces Second Quarter Operating Results from the Mineral Park Mine - More
- July 08, 2009 | Item | E-mail
Trilliant Exploration Closes $2.42 Million Investment - More
- July 08, 2009 | Item | E-mail
Eloro Sets Strategy on Gold Resources in Established Mining Camps, Drops Hydrocarbon Property - More
- July 08, 2009 | Item | E-mail
Tara Minerals Enters Into Investor Relations Agreement - More
- July 08, 2009 | Item | E-mail
Andina Announces CFO Transition; Provides Annual Meeting Update - More
- July 08, 2009 | Item | E-mail
White Mountain Advances Cerro Blanco Titanium Project to Stage 2 Piloting - More
- July 08, 2009 | Item | E-mail
Bilbao feasibility underway - More
- July 08, 2009 | Item | E-mail
Strateco Intersects 0.61% eU3O8 Over 25.7 Metres at Matoush and Substantially Increases Its Drilling Budget for the Next 24 Months - More
- July 08, 2009 | Item | E-mail
TerraX options Blackfly Gold Property, Atikokan Area, Northwest Ontario; recent rock sampling yields 167 g/t gold - More
- July 08, 2009 | Item | E-mail
Powertech Options Additional Property at Centennial - More
- July 08, 2009 | Item | E-mail
Melkior Drills in Carscallen-West Timmins Gold Area - More
- July 08, 2009 | Item | E-mail
Mega Uranium Ltd.: Resource Increase and Upgrade at Lake Maitland, Western Australia - More
- July 08, 2009 | Item | E-mail
El Capitan Details Company Strategy to Establish True Asset Value - More
- July 08, 2009 | Item | E-mail
Mexoro Minerals Ltd. Signs Definitive Agreement to Sell Its Guazapares Project for Up to $5.3 Million - More
- July 08, 2009 | Item | E-mail
Northern Superior Resources Inc. Explores for Source of Gold Grain-In-Till Dispersal Trains, Thorne Lake Property, Northwestern Ontario - More
- July 08, 2009 | Item | E-mail
Molycor Gold Corp.: NI 43-101 236 Million Tonne Magnesium Resource - More
- July 08, 2009 | Item | E-mail
Uruguay Mineral Exploration Inc. Announces Results for Arenal Deeps Drill Including 16.1 Meters at 10.3 g/t Au and 40.2m at 3.43g/t - More
- July 08, 2009 | Item | E-mail
Endeavour Silver Continues to Extend High Grade Silver-Gold Ore in New Lucero Vein Discovery, Guanajuato Mines Project, Mexico; Lucero Vein Now in Production - "In September, 2008, Endeavour discovered this new silver-gold vein while drilling the adjacent San Jose Vein at the Bolanitos mine. After two drill holes intersected both the San Jose Vein plus a previously unidentified new vein (now called Lucero), it was determined that the most effective way to explore Lucero was a short underground cross-cut tunnel from the San Jose mine workings followed by underground drifting (tunneling) along the new vein." More
- July 08, 2009 | Item | E-mail
Paramount Gold and Silver Corp Signs Definitive Agreement to Expand its San Miguel Project - "Paramount Gold and Silver Corp. (TSX:PZG - News)(NYSE:PZG - News)(Frankfurt:P6G - News)(WKN: A0HGKQ) has signed definitive agreements to acquire the Guazapares project located in southwestern Chihuahua, Mexico from Mexoro Minerals Ltd. (OTC.BB:MXOM - News) for a purchase price of $3.7 million." More
- July 08, 2009 | Item | E-mail
Minefinders Reports Second Quarter Production and Sales Results; Sets Time for Full Second Quarter Disclosure - "Metal production has continued to escalate as the Dolores Mine progresses to steady-state production with over 9,000 ounces of gold and over 150,000 ounces of silver produced in June, 2009. This has enabled us to pay down an additional $2.5 million of debt and continue to strengthen our overall financial position," said Mark Bailey, President and Chief Executive Officer. "Our momentum has not been hampered by the rainy season, which began in June, and we see continued growth in the third and fourth quarters of 2009." More
- July 08, 2009 | Item | E-mail
Exeter Reports High Grade Resource Estimate for Cerro Moro - "Exeter Resource Corporation (TSX-V:XRC - News)(AMEX:XRA - News)(Frankfurt:EXB - News) ("Exeter" or the "Company") is pleased to provide the first National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for its Cerro Moro gold-silver property in Santa Cruz Province, Argentina. The inferred mineral resource estimate totals 646,000 ounces gold equivalent(i), at a grade of 18 grams per tonne ("g/t") gold equivalent(i) (0.52 ounces per ton). The resource estimate is significantly impacted by the bonanza grades from the Escondida vein. Escondida contributes 518,000 ounces gold equivalent(i) at a grade of 34 g/t gold equivalent(i) (0.99 ounces per ton) (324,000 ounces of gold and 13.6 million ounces of silver)." More
- July 08, 2009 | Item | E-mail
Ivanhoe Mines Appoints Jean Chretien, Former Canadian Prime Minister, as Senior International Adviser - "Robert Friedland, Executive Chairman of Ivanhoe Mines (TSX:IVN - News)(NYSE:IVN - News)(NASDAQ:IVN - News), today announced the appointment of the Right Honourable Jean Chretien, the 20th Prime Minister of Canada, as senior international adviser to the company." More
- July 08, 2009 | Item | E-mail
LGL (Lihir Gold Limited) Closes Hedge Book - "Lihir Gold Ltd (TSX:LGG - News)(ASX:LGL - News)(NASDAQ:LIHR - News) ("LGL") reports that its gold production is once again completely unhedged, following the closure of the Company's hedge book.
At the end of March 2009, the company had forward sales contracts in place covering 96,000 ounces of gold, to be delivered over the period to September 2010 at a price of A$600 per ounce. These hedging contracts had been put in place by Equigold NL prior to its acquisition by LGL in June 2008." More
- July 08, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 8 July, 2009 | |
